Union Budget 2025 – Catalysing India’s Economic Transformation
The Union Budget 2025 is a defining moment in India’s economic trajectory, balancing fiscal prudence, inclusivity, and transformative growth. A budget that does not merely allocate resources but lays the foundation for India’s next era of economic supremacy.
Under the bold and visionary leadership of Prime Minister Narendra Modi, India has transcended challenges, embraced innovation, and redefined global engagement. This budget is another milestone in his commitment to self-reliance, industrial excellence, and global leadership.
For industry bodies like PHDCCI, this is not just a financial statement; it is a call to action. A call to leverage opportunities, drive investments, create jobs, and position India as the global epicentre of growth and innovation.
Income Tax Reforms:
The Union Budget 2025 brings a transformational shift in tax relief for middle-class taxpayers, fostering greater financial security and disposable income. The nil tax slab threshold has been raised to ₹12 lakh annually, significantly reducing the tax burden on salaried individuals and small business owners. Additionally, under the new tax regime, the highest tax rate of 30% will now apply only to incomes exceeding ₹24 lakh, ensuring a more progressive and equitable taxation structure.
This reform not only empowers taxpayers but also enhances consumer spending, investment potential, and economic growth, reinforcing India’s path toward a simplified, transparent, and growth-oriented tax system.
Agricultural Reforms: Strengthening India’s Farming Future
- Prime Minister Dhan-Dhaanya Krishi Yojana: A transformative initiative set to uplift 1.7 crore farmers across 100 districts with low agricultural productivity, ensuring access to modern farming techniques, advanced irrigation solutions, and financial support. This scheme is transformational in rural prosperity, fostering higher yields, better incomes, and a resilient agricultural economy.
- Mission for Aatmanirbharta in Pulses: A six-year strategic mission to achieve self-reliance in pulses, with a dedicated focus on Tur, Urad, and Masoor. By enhancing domestic production, reducing import dependence, and supporting farmers with advanced research, superior seed varieties, and sustainable practices, this mission empowers India to become self-sufficient in essential pulses, ensuring both food security and economic stability for millions.
This budget underscores the government’s commitment to the agricultural sector, reinforcing the foundation of Aatmanirbhar Bharat and paving the way for a prosperous and self-reliant farming ecosystem.
Driving Manufacturing & Exports: Strengthening India’s Industrial Might
- National Manufacturing Mission: A strategic push to bolster India’s industrial ecosystem, this mission reinforces the ‘Make in India’ vision by providing comprehensive policy support to small, medium, and large enterprises. With a focus on cutting-edge innovation, sustainable production, and global competitiveness, this initiative will drive job creation, skill development, and increased domestic and international market penetration.
- Incentives for Electronics & Electric Vehicles: Recognizing the transformative potential of the electronics and EV sectors, the budget introduces critical exemptions on components such as open cells used in LED/LCD TVs and capital goods for lithium-ion batteries used in mobile phones and electric vehicles. This measure will lower production costs, encourage domestic manufacturing, and position India as a global hub for next-gen electronics and sustainable mobility solutions.
- Enhanced Credit Guarantee Scheme: A significant boost for MSMEs, the expansion of the Credit Guarantee Scheme ensures greater access to affordable financing, reduced collateral requirements, and enhanced liquidity. By empowering small and medium enterprises, this initiative fosters entrepreneurial growth, accelerates innovation, and strengthens supply chains, ultimately fuelling India’s journey to becoming a global manufacturing powerhouse.
This budget lays the groundwork for industrial resurgence, reinforcing India’s position as a leader in manufacturing, technology, and exports, and driving sustainable economic growth for the future.
Finally, the Union Budget 2025 marks a pivotal milestone in India’s economic journey, balancing fiscal prudence, inclusivity, and transformative growth. With bold income tax reforms, it provides significant relief to the middle class, fostering greater financial stability and consumer spending. A game-changing allocation of ₹1.5 lakh crore in 50-year interest-free loans to states, providing a historic boost to capital expenditure while incentivizing transformative reforms. Additionally, social security measures, including healthcare coverage for gig workers and a focus on research and education, ensure holistic development. This budget is a blueprint for India’s economic ascent—one that fosters innovation, strengthens industries, and propels the nation towards self-reliance and global leadership.
Author: Dr Ranjeet Mehta CEO & Secretary General PHDCCI
